Housing Affordability Land Problem Explained In Historical Steps

Housing Affordability Land Problem Explained In Historical Steps

It is a matter of dispute which group has played the most land in the creation of the increasingly. Expensive housing market in Australian cities. Two popular targets are the baby boomers and foreign investors.

My new book, The Geopolitics of Real Estate demonstrates that it is wrong to place blame. On specific foreign or domestic investor groups for short-term affordability problems.

Reverse-engineering the problem back to Australia’s founding of property-owning democracy is one way to look at housing affordability. The history of the problem shows that it was cause by five steps.

Aboriginal People Evict From Their Land

If you look at the timeline to analyze housing affordability, it becomes clear that the question is. Whose land are foreign and domestic real estate investors trading on?

You can go back a few centuries to find what Libby Porter, RMIT’s academic, calls the original dispossession. This is the time when Aboriginal peoples were force from their land.

Aboriginal land dispossessions are not just a collection of historical events that took place in the past. These acts created the legal and social conditions that enable land and real estate trading today.

This puts into sharp relief statements made by real estate investors in the country about foreigners invading their property.

Foreigners And Capital Were Transfer Onto The Land

Early British colonial settlements emphasized trade and migration. Edward Wakefield, an influential force in South Australia’s colonization. Advocate that land should sold, rather than given away, in the 19th century. This would encourage new landowners pay the emigration expenses associated with transporting migrants to provide labour for the colony.

Wakefield believed that immigrants would sell their labour to buy land. This he called systematic colonization, and he later advocated for these ideas in Canada and New Zealand. These ideas of globalizing the extent to which foreigners can be move through local colonial lands opened up new perspectives on the global market for labour and land.

Modern governments continue to use movement of capital and people through their real estate and land markets to support their economies and labour market.

A Property-Owning Democracy Was Create

A society that owns property is one where between 65%-85% of households have or are buying the home they live. The Australian government began building a property-owning democracy after the second world War. It required two interrelated tasks to build.

The first was to claim, measure, quantify, and distribute the land in preparation for real estate sales. The second was to create a new way of looking at real estate that would work within the property-owning society.

The government increased regulation of the movement and money of people across Australian borders after the war. It established a number of economic and social policies that were strongly aimed at shaping the way Australians think about real estate, or the Great Australian Dream.

The baby boomers were deeply influenced by post-war housing and economic policy, ideas about nationhood, citizenship, and the responsibility of suburban consumers of homes and household goods

Land And Real Estate Were Incorporated As Private Property

A series of crises in real estate and land emerged in the second decade of the 20th Century. As the settler politics of claiming land and defending it was challenged, Aboriginal land rights were brought to the forefront. A crisis in housing affordability arose as a result of increasing population and the effects on property-owning democracy in major Australian cities.

Comparing their experience with their parents, it was much more difficult for the children from the baby boomers to invest in urban real estate markets than they did. China was experiencing a land revolution as the baby boomers bought real estate in China in the second half 20th century.

In China, the collectivization of land effectively eliminated the land from the market for private property in the middle 20th century. A few decades later, it was radically restore. The end of the 20th Century saw China’s geopolitical rise change the flow of money and people around the globe.

Follow The Geopolitics To See Global Movements Of Capital And People

The Cultural Revolution was not the only reason for strong private property land and real-estate ideals. China’s key strategy for building wealth was the commodification and sale of real estate and land.

By the end of the century, the surplus Chinese capital had escaped the nation’s borders. The new middle class and super-rich Chinese sought foreign real estate opportunities.

The baby boomer dream of owning a real estate property was becoming more difficult to realize for their children at the turn of this century. However, the Chinese real estate dream was still very much in its infancy.

The history of foreign investments in land and real property shows that the global movement of capital and people is strongly link to geopolitics.